Business Forms Essay

1040 Words Apr 1st, 2012 5 Pages
Many people dream of starting their own business and being their own boss calling all the shots. Before starting a business, entrepreneurs must think about what kind of business they want to start and under what Forms. The different kind of forms to consider is sole proprietorship, partnership, corporation, and franchise. Each form is tailored to certain kind of business and knowing the details of each will enhance the business strategy.

Sole proprietorship: This form of business structure is mostly used by someone who owns a business by themselves. An example of this type of business in someone starting a home based business such as direct sales. Selling merchandise out of a home office is ideal for new start-ups because the
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The disadvantages to partnering in a business are not being able to agree on all aspects of how the business is run. If one partner feels that a piece of equipment is needed to offer more services to the business but the other party does not agree with the added expense, this could lead to a troublesome business relationship. Another disadvantage to partnership is being responsible for each other actions. All parties represent the business and if one partner does anything not in accordance with the business practices, the business suffers as a whole.

Corporation Corporations usually begin from a small business that has grown to where the next step is to incorporate it. An example of a business is a business owner designed a product such as duck calls for hunting. Businesses started out a hobby at home and then grown to where it was small business to now major retailers are interested in the product. The advantage to converting a small business into a corporation give the business its own separate legal entity, this means that the business owner’s personal assets are protected. The business owner goes from owner to shareholder where only the capital investment is at risk. Being incorporated allows to business to attract new investments and fund

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